Exam 13: Aggregate Demand and Aggregate Supply Analysis

The process of an economy adjusting from a recession back to potential GDP in the long run without any government intervention is known as

Why does the short-run aggregate supply curve shift to the right in the long run,following a decrease in aggregate demand?

What is the relationship among the AD,SRAS and LRAS curves when the economy is in macroeconomic equilibrium?

If the short-run aggregate supply increases by less than the long-run aggregate supply,then,at the short-run equilibrium,

During the recession of 2007-2009 in the United States,________ relative to potential GDP.

In September of 2007,the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year.Explain how lower interest rates affect the aggregate demand curve.

The aggregate demand curve shows the relationship between the ________ and ________.

Last week,six Swedish kronor could purchase one U.S.dollar.This week,it takes eight Swedish kronor to purchase one U.S.dollar.This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S.aggregate demand.

In the long run,

Because of the slope(s)of the ________,we can say that a decrease in the price level leads to a higher level of real GDP demanded.

Using an aggregate demand graph,illustrate the impact of an increase in the growth rate of U.S.GDP relative to the growth rate of foreign GDP.

A supply shock causes the long-run aggregate supply curve to shift left,decreasing the price level.

The automatic mechanism ________ the price level in the case of ________ and ________ the price level in the case of ________.

Short-run macroeconomic equilibrium occurs when

On the long-run aggregate supply curve,

Figure 13-1 -Refer to Figure 13-1.Ceteris paribus,an increase in firms' expectations of the future profitability of investment spending would be represented by a movement from

Figure 13-2 -Refer to Figure 13-2.Ceteris paribus,an increase in workers and firms adjusting to having previously overestimated the price level would be represented by a movement from

If,due to a recession,foreign workers begin to leave the United States to search for temporary work in their home countries until the recession has ended,this will

German automobile exports were hurt in 2008 as a result of the recession.How would this decrease in exports have affected Germany's aggregate demand curve?

If the U.S.dollar increases in value relative to other currencies,how does this affect the aggregate demand curve?